Is Dell's sales team run by Jordan Belfort? Because they just did the best thing that’s happened to Dell in years: landed a whale named Elon Musk. Simply put, Dell is reportedly inking a $5 billion deal to sell AI servers packed with Nvidia GB200 GPUs to Musk's latest obsession, xAI. For context, that one order alone is bigger than Dell’s entire AI server demand from last quarter ($3.6B). Meaning, Michael Dell’s people just ran up the scorecard—and Wall Street took notice. 

(Source: Giphy) 

In short, Elon isn’t just boosting Dell’s bottom line, he’s in full-blown grudge mode against OpenAI. As I’m sure you know, he’s been throwing tantrums ever since OpenAI told him to get lost, and now he’s laser-focused on burning billions to build xAI into a legitimate rival. The problem? OpenAI is already embedded in Microsoft’s entire ecosystem, running enterprises, and basically powering half the internet. Meanwhile, xAI’s biggest claim to fame is Grok, a chatbot that lives inside X  and spits out edgelord responses like it was trained on Reddit arguments.

So yeah, Musk needs more than just hype—he needs hardware, and a lot of it. Training AI models isn’t some plug-and-play operation; it requires absurd amounts of computing power, which means buying as many Nvidia GPUs as humanly possible. And that’s exactly what Musk is doing—drowning xAI in so much processing power that it might actually catch up to OpenAI before DeepSeek raises enough money to really obliterate everyone in the space. 

(Source: CNBC) 

Now obviously, none of this comes cheap. That’s why Musk is out there shaking down investors for another $10 billion, pushing xAI’s valuation to a completely insane $75 billion. That’s right—seventy-five billion dollars for a company that, at this moment, has no real enterprise customers, no major product traction, and a chatbot that's not any better than OpenAI’s latest o3 mini. 

However, if we’ve learned anything over the years, it's that Musk’s cult following will cut this check without blinking. Sequoia, Andreessen Horowitz, Fidelity, BlackRock—all the usual suspects are in the mix, are practically ready to throw money at whatever fever dream Musk is selling this quarter. Because if there’s one thing the VC world loves, it’s burning obscene amounts of cash on an AI startup that might, maybe, someday, take down OpenAI.

(Source: Bloomberg) 

And that’s the real game here. The man, the myth, the legend already tried to straight-up buy OpenAI for $97 billion, and since that didn’t work, he’s going full-send to make sure he comes out on top.

So with that, what happens next? Well, xAI has the hardware now, but can it actually deliver? OpenAI isn’t slowing down, and Microsoft is more than happy to keep writing blank checks to make sure it stays ahead. If Musk’s AI doesn’t start producing breakthroughs—real ones, not just Twitter memes—this whole thing could turn into yet another expensive, overhyped failure, right next to the Cybertruck’s bulletproof windows and whatever the hell happened to Neuralink.

(Source: Giphy) 

However, if he does pull this off? If xAI actually delivers something that puts OpenAI on its heels? Then we’re looking at one of the biggest tech showdowns in history. And at the very least, Michael Dell is walking away from this whole mess billions of dollars richer—which, honestly, is probably the safest bet anyone’s made in this entire AI circus.

For now though, you better believe that Dell is the largest benefactor here. So keep your eyes on the stock as shares are continuing to soar 3.16% today. So with that, place your bets accordingly, friends. And as always, stay safe and stay frosty! Until next time…

P.S. Want deep dives on the hottest AI plays before the rest of the market catches on? Want to know who’s riding the hype train and who’s actually building something that won’t collapse the second the AI bubble deflates? Want the inside track on the moves that matter before they hit the front page? Then quit playing around and subscribe to Stocks.News Premium ASAP… 

Stocks.News holds positions in Microsoft and Dell Technologies as mentioned in the article.